About the Company:
RITES Ltd is a wholly owned Government Company, a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India.
Company is ranked no.1 based on net profit and dividend declared in Industrial Development and Technical Consultancy Services sector.
Company has experience spanning 44 years and has undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions. RITES Ltd is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
Company provides diversified and comprehensive array of services from concept to commissioning in all facets of transport infrastructure and related technologies.
Company has significant presence as a transport infrastructure consultancy organization in the railway sector. However, they also provide consultancy services across other infrastructure and energy market sectors including urban transport, roads and highways, ports, inland waterways, airports, institutional buildings, rope ways, power procurement and renewable energy.
over the years, Company has served various public sector undertakings, government agencies and instrumentalities and large private sector corporations, both in India and abroad.
In India, Company’s clients include various central and state government ministries, departments, instrumentalities as well as local government bodies and public sector undertakings.
Company’s Key Clients:
| Indian Railways | NTPC Ltd | High Speed Rail Corporation of India Ltd | Rashtriya Ispat Nigam Limited, |
| Hindustan Petroleum Corporation Limited | Bharat Coking Coal Limited | L&T Metro Rail (Hyderabad) Limited | Airports Authority of India. |
Company’s Background:
RITES Ltd was incorporated by the Ministry of Railways, Government of India (“MoR”) and have the benefit of being associated with the Indian Railways, which is the fourth longest rail network in the world.
Since Company’s inception in 1974, they have been involved in providing transport infrastructure consultancy and quality assurance services and have developed expertise in:
• Design, engineering and consultancy services in transport infrastructure sector with focus on railways, urban transport, roads and highways, ports, inland waterways, airports and ropeways.
• Leasing, export, maintenance and rehabilitation of locomotives and rolling stock.
• Wagon manufacturing, renewable energy generation and power procurement for Indian Railways through our collaborations by way of joint venture arrangements, subsidiaries or consortium arrangements.
Recognition for Company’s Performance:
In recognition of Company’s consistent performance and achievement of stipulated targets as negotiated in terms of the Memorandum of Understanding entered into with the MoR on an annual basis, the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises, Government of India has rated RITES Ltd as ‘Excellent’ with a score of 90.09 for the financial year 2016-2017.
Company has also been rated consistently as “Excellent” in the previous five financial years (i.e. from FY 2012 to FY 2016).
Company’s Subsidiary:
Railway Energy Management Company Limited is the only entity mandated for procurement of power from third parties and for captive renewable energy generation, for the Indian Railways
Management Team:
- Mr. Rajeev Mehrotra (Designation: Chairman & Managing Director)
- Mr. Arbind Kumar (Designation: Director (Projects)
- Mr. Ajay Kumar Gaur (Designation: Director (Finance)
Objectives of the Issue:
OFS: (Offer for Sale) (Around Rs. 466.2 cr )
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Peer group Comparison:
There are no comparable listed companies in India engaged in the same line of business as RITES Ltd, hence comparison with industry peers are not applicable.
Positives for the Company:
Company has been a debt free Company for more than a Decade.
Preferred Consultancy Organization of the Government of India including the Indian Railways.
Company was incorporated by the MoR and have the benefit of being associated with the Indian Railways, which is the fourth longest rail network in the world.
Company has been involved in and have contributed to the development of transport infrastructure in India for the last 44 years.
They are a nominated organization of the Indian Railways for the export of railway locomotives, coaches and other equipment which are manufactured by the Indian Railways (other than exports to Malaysia, Indonesia and Thailand).
They are also a nominated organization for inspection of various materials and equipment purchased by the Indian Railways.
Specialized Expertise in the transport Infrastructure Space.
Company has developed specialized expertise over the years in providing consultancy services across major market segments in the transport infrastructure sector including railways, urban transport, roads and highways, ports, inland waterways, airports and ropeways.
Large order book with strong and diversified Clientele base across Sectors.
As of March 31, 2018, Company’s order book stands at Rs.4818.6 crores, which includes 353 ongoing projects of value over Rs. 1 crore each.
Financials of the Company: (Consolidated)
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 1083.05 | 1223.47 | 1159.1 | 1226.72 | 1563.27 | 1061.06 |
| Net Profit | 233.05 | 260.53 | 312.21 | 282.51 | 361.66 | 252.53 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 20th June 2018 |
| Issue Closes on:. | 22nd June 2018 |
| Issue Price | Rs. 180 – 185 |
| Face Value | Rs.10 |
| Minimum Lot | 80 shares |
| Retail Portion | 35% |
| Minimum Investment | Rs. 14,800 |
| Issue Constitutes | 12.60% |
| Issue Size | Rs. 466.2 cr |
| Market Cap | Rs. 3700 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 2,52,00,000 |
| Equity Shares Prior to the Issue | 20,00,00,000 |
| Equity Shares after the Issue | 20,00,00,000 |
Important Dates:
| Finalization of Basis of Allotment | on or before 27th June 2018 |
| Initiation of Refunds | on or before 28th June 2018 |
| Credit of Equity Shares: | on or before 29th June 2018 |
| Listing Date: | on or before 2nd July 2018 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,20,00,000 | 0.02 | 0.31 | 71.71 |
| NII | 36,00,000 | 0.18 | 0.48 | 194.5 |
| Retail | 84,00,000 | 1.65 | 5.59 | 15.37 |
| Employee | 12,00,000 | 0.23 | 0.57 | 0.96 |
| TOTAL | 2,52,00,000 | 0.59 | 2.11 | 67.11 |
IPO Valuation Parameters: (Consolidated)
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 17.64 | 10.48 | 17.28% | 102.60 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 12/06/18 | RITES Ltd | Rs.180 – 185 | 14 – 16 | 700 – 750 |
Reviews of Current & Upcoming IPOs: (Click on the Link)
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
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| RITES Limited SCOPE Minar Laxmi Nagar, Delhi 110 092, India Tel: +91 11 2202 4610 Fax: +91 11 2202 4660 Website: www.ritesltd.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited Address: C-101,1st Floor, 247 Park, Lal Bahadur Shashtri Marg, Vikhroli (West), Mumbai – 400 083, India Telephone: +91 22 4918 6200 Facsimile: +91 22 4918 6195 E-mail: rites.ipo@linkintime.co.in Website: www.linkintime.co.in |
